InfoSAWIT, ACEH TAMIANG – Deputy Director of Market Transformation (Indonesia) in Roundtable on Sustainable Palm Oil (RSPO), M. Windrawan Inantha, recently said the big potential to integrate independent smallholders that got RSPO certificate to the physical supply chain at PT Mora Niaga Jaya, as one RSPO members that committed to sustainability.
In his visit few weeks ago to Aceh Tamiang with Director of Yayasan Inisiatif Dagang Hijau (IDH) Indonesia, Nassat Idris, Windrawan said that the main mission was about to explore the chance to connect the independent smallholders that got RSPO certificate with the available and sustainable supply chain.
“In this visit, we got the chance to discuss with many independent smallholders, the team from Pusat Unggulan Perkebunan Lestari (PUPL) Aceh Tamiang, and the team of PT Mora Niaga Jaya that are committed to sustainability. The possibility to bridge the smallholders with the sustainable supply chain would be not only promising but also be important,” Windrawan said, as InfoSAWIT quoted, Monday (21/10/2024).
The main challenges to integrate the independent smallholders, are the logistics, fiancé, and technical aspects. Even though the big palm oil plantation companies developed traceability aspects, the smallholders would be always difficult to get connection (with the companies) because they did not get formal agreement. This made their production result difficult to get tracked. The gap blocked every effort to qualify the international scale – standards and realize sustainability in palm oil industries completely.
Windrawan also said that it would be the strategic thing to connect the independent smallholders with the traceability system in the companies. It could escalate supply chain transparency and sustainability. By having partnership, capacity development, and taking advantages on technology, the companies would confirm that smallholders’ palm oil production would qualify sustainability standards in the form of certified sustainable palm oil (CSPO).
“This would be the big chance to create mutual profits for many parties. The independent smallholders would get the wider market access, while the companies would confirm more transparent supply chain and get the sustainable standards,” he said.
Windrawan did appreciate IDH Indonesia, the independent smallholders, PUPL Aceh Tamiang, and PT Mora Niaga Jaya for their commitment on developing more sustainable future. He would be optimist the collaboration would open inclusivity and sustainability in every palm oil supply chain.
“The collaboration would be not only about to increase palm oil sustainability but also develop inclusive partnership and deliver the advantages for every party involved," he said. (T2)
